Digg may sell to Google or Microsoft

According to an article on TechCrunch, although disputed as being completely inaccurate by Digg CEO Jay Adelson, the social news site is working with an investment bank on pitching the company for sale to large tech and media companies, and are said to be in talks with both Google and Microsoft – whom are both supposedly drawing closer to making their formal bids for the acquisition.

Google is predicted to make an offer in the vicinity of US$200-US$250 million for the company, which is well below the US$300 million price tag attached late last year. Microsoft would apparently bid much lower, as a large chunk of Digg’s revenue is already supplied by Microsoft due to an existing advertising deal.